Bill Summary – FastDemocracy

Fiscal Note
                                     Fiscal Services Division
HF 662 – State Government Alignment (LSB2073HV)
Staff Contact: Austin Brinks (515.725.2200) austin.brinks@legis.iowa.gov
               Maria Wagenhofer (515.281.5270) maria.wagenhofer@legis.iowa.gov
               Ron Robinson (515.281.6256) ron.robinson@legis.iowa.gov
Fiscal Note Version – New
House File 662 relates to the organization, structure, and functions of State government.
Division IV (Department of Justice), Division VI (Economic Development Authority Partner State
Program), and Division XIII (Department for the Blind) take effect upon enactment. Division
XVIII (Salaries of Appointed State Officers) takes effect June 23, 2023.
Note: The following information was provided to the LSA by State agencies as of March 14,
2023.
Division I — Department of Health and Human Services
Description and Background
Division I relates to the merging of the Department of Human Services (DHS), the Department
of Public Health (DPH), the Department on Aging (DOA), the Department of Human Rights
(DHR), Early Childhood Iowa (ECI), and the Iowa Commission on Volunteer Service (ICVS) into
the consolidated Department of Health and Human Services (HHS). Division I makes the
following changes:
• Eliminates the positions of the Director of the DPH, DOA, and DHR.
• Eliminates references to the subunit structure and the heads of the subunits of the HHS and
     the other agencies incorporated into the HHS within the Department and makes the Director
     of the HHS responsible for these agencies and their divisions, including:
     • Center for Rural Health and Primary Care.
     • Center for Congenital and Inherited Disorders.
     • Oral Health and Delivery Systems Bureau and the State Public Health Dental Director.
     • Division of Tobacco Use Prevention and Control and its Administrator.
     • Division for Records and Statistics.
     • Bureau of Professional Licensure.
     • Division of Acute Disease Prevention and Emergency Response.
     • Division of Mental Health and Disability Services (MHDS) and its administrator.
     • Administrator of State Mental Health Institutes (MHIs) and State Resource Centers
         (SRCs).
     • Division related to income and service programs and its Administrator.
     • Administrator of the Child Support Recovery Unit (CSRU).
     • Division of Adult, Children, and Family Services and its Administrator.
     • Division of Community Advocacy and Services.
     • Division of Community Action Agencies and its Administrator.
     • Division of Criminal and Juvenile Justice Planning and its Administrator.
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•   Eliminates certain representation from the HHS on all boards, commissions, committees,
    and other entities incorporated into the HHS.
•   Changes current Iowa Code references from food stamps to refer to the Supplemental
    Nutrition Assistance Program (SNAP).
•   Designates a record check evaluation system to refer to the process used by the HHS to
    perform child and dependent adult abuse record checks and to evaluate criminal history and
    abuse records.
•   Eliminates the State Board of Health and incorporates its functions into the Council on
    Health and Human Services. Expands the Council by two members, with at least one of
    them being a physician.
•   Moves the Child Abuse Prevention Program Advisory Committee from Iowa Code chapter
    217 to Iowa Code chapter 235A.
•   Eliminates the University of Iowa as the home of the State Hygienic Laboratory.
•   Moves the following duties to the HHS:
    • Iowa Child Death Review Team from the Office of the State Medical Examiner.
    • Iowa Domestic Abuse Death Review Team from an independent agency, and changes
        its membership.
    • Responsibility for regulation of consumable hemp from the Department of Inspections
        and Appeals (DIA).
    • Child Advocacy Board from the DIA.
•   Repeals numerous Iowa Code provisions, including Iowa Code section 222.6, relating to
    districts for resource centers.
•   Strikes the July 1, 2023, repeal date established by 2022 Iowa Acts, chapter 1098 (Juvenile
    Justice and Child and Family Welfare Act) regarding the formula for aid paid by the State,
    rules adopted by the Director of the HHS, standards for annual approval of the homes, and
    the establishment and purpose of the Juvenile Detention Home Fund. The striking of the
    repeal date allows these sections to continue indefinitely as currently enacted.
•   Allows the HHS to employ or retain attorneys to provide legal counsel, in adherence with
    Iowa Code section 13.7.
2022 Iowa Acts, House File 2578 (FY 2023 Health and Human Services Appropriations Act),
created the HHS and a transition process to move the DPH and its divisions and employees into
the former DHS to form the HHS. The process was effective July 1, 2022, and is to be finalized
by the end of FY 2023 and completed by July 1, 2023 (FY 2024).
Assumptions and Fiscal Impact
According to the HHS, Division I will eliminate 110.0 currently unfilled full-time equivalent (FTE)
positions (out of 5,609.7 total FTE positions) due to the alignment across the DHS, DPH, DOA,
and DHR. This will reduce overall department expenditures by approximately $6.4 million
annually beginning in FY 2024, including $4.4 million annually from federal funds and $2.0
million annually from the State General Fund.
Division I eliminates annual fees paid by the DPH to the Auditor of State beginning in FY 2024.
In FY 2022, the DPH paid the Auditor of State approximately $96,000; however, auditing costs
to the HHS are likely to increase by a similar amount with the elimination of the DPH. Overall,
auditing services for all entities aligning into the HHS under Division I are likely to remain similar
to existing services, keeping costs relatively stable.
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Overall, Division I reduces the number of annual and quarterly reports mandated to be filed by
the HHS with the Legislature, including elimination of the DPH and DHR annual reports, which
is likely to reduce workloads for existing employees.
Division I eliminates the State Board of Health, which is expected to reduce expenditures and
Department workload by a minimal amount beginning in FY 2024. Board costs in FY 2022
totaled $1,700.
Division I allows the HHS to employ or retain attorneys to provide legal counsel, which may lead
to new annual costs. However, these costs cannot be estimated at this time, as the HHS has
made no decision on employing attorneys. The HHS would utilize savings resulting from
Division I to fund any attorneys, if necessary.
Sources
Legislative Services Agency
Department of Health and Human Services
Staff Contacts
Christopher Ubben (515.725.0134) chris.ubben@legis.iowa.gov
Eric Richardson (515.281.6767) eric.richardson@legis.iowa.gov
Division II — Department of Administrative Services
Description and Background
Division II transfers the Library Services duties and responsibilities of the Department of
Education (DE) to the DAS. The State Librarian is transferred to the DAS and will be appointed
by the Director of the DAS. The State Commission of Libraries currently appoints the State
Librarian. This Commission is also transferred to the DAS. The State Archivist and duties
related to State records and archives are transferred to the DAS. The Director of the
Department of Cultural Affairs (DCA) is removed as a member of the State Records
Commission.
Division II transfers most of the duties of the Historical Division of the DCA and the
Administrator of the Historical Division to the DAS and the Director of the DAS. The Historic
Preservation Officer, as well as related duties concerning historic properties and historic
preservation activities, are not transferred to the DAS. Division II establishes the Director of the
DAS as the ex officio member of the Iowa Historical Records Advisory Board, instead of the
Administrator of the Historical Division of the DCA. Division II transfers the Iowa Heritage Fund
and the Historical Resource Development Program to the DAS. Division II requires the DAS to
undertake responsibilities under Iowa Code chapter 305B, concerning museum property, which
are currently undertaken by the DCA. Finally, Division II assigns control of the Battle Flag
Restoration Fund to the DAS from the DCA.
Assumptions and Fiscal Impact
The DAS has stated that Division II has no fiscal impact to the State.
Sources
Department of Administrative Services
Legislative Services Agency
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
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Division III — Department of Inspections, Appeals, and Licensing
Description and Background
Division III makes the following changes:
• Renames the Department of Inspections and Appeals (DIA) to the Department of
    Inspections, Appeals, and Licensing (DIAL).
• Modifies the organizational structure of the DIAL to include duties related to licensing and
    laws related to employment safety, labor standards, and workers’ compensation.
• Eliminates the Investigations and Health Facilities Division of the DIAL and adds a Labor
    Services and Workers’ Compensation Division.
• Transfers the duties of the Labor Services Division, the Labor Commissioner, the Workers’
    Compensation Division, and the current Commissioner of the Iowa Department of Workforce
    Development to the DIAL and the Director of the DIAL. Division III provides that the Labor
    Commissioner and the Workers’ Compensation Commissioner will serve at the pleasure of
    the Governor.
• Transfers the licensing and regulation duties of certain fire control-related and building code-
    related activities from the Department of Public Safety (DPS) and the State Fire Marshal to
    the DIAL and the Director of the DIAL.
• Establishes that the Director of the DIAL will also be the State Building Code Commissioner
    and transfers the applicable responsibilities from the Commissioner of Public Safety.
• Transfers the licensing and regulation duties of certain health-related professions from the
    Department of Public Health (DPH) to the DIAL.
• Eliminates the Professional Licensing and Regulation Bureau from the Department of
    Commerce. The duties of the Bureau and other responsibilities under the Department of
    Commerce will transfer to the DIAL.
• Transfers allocation of certain School Infrastructure Fund moneys to the DIAL’s authority.
    Currently, under Iowa Code section 12.83, up to $50,000 of moneys deposited each fiscal
    year in the School Infrastructure Fund is allocated to the DPS for the use of the State Fire
    Marshal. The State Fire Marshal uses these funds for the purpose of retaining an architect
    or architectural firm to evaluate structures for which School Infrastructure Program grant
    applications are made, to consult with school district representatives, to review construction
    drawings and blueprints, and to perform related duties to ensure the best possible use of
    moneys received by a school district under the School Infrastructure Program. The State
    Fire Marshal is required to provide for the review of plans, drawings, and blueprints in a
    timely manner. The Bill shifts these responsibilities to the DIAL.
• Transfers the responsibilities and associated funds of the DPS and State Fire Marshal under
    Iowa Code chapters 103 and 105 regarding electricians, electrical contractors, plumbers,
    mechanical professionals, and contractors to the DIAL and the Director of the DIAL.
• Transfers the duty to appointing and supervising a full-time Executive Director for the Board
    of Medicine, the Board of Nursing, the Dental Board, and the Board of Pharmacy from the
    DPH to the DIAL and the Director of the DIAL.
• Transfers responsibilities, associated funds, and duties concerning professional engineers
    and land surveyors, real estate brokers and salespersons, real estate appraisals and
    appraisers, real estate appraisal management companies, licensed architects, landscape
    architects, and registered interior designers from the Department of Commerce to the DIAL
    and the Director of the DIAL.
• Moves the Iowa State Civil Rights Commission under the DIAL so that it is no longer a
    stand-alone agency.
• Establishes that administrative law judges examining unemployment security, the Iowa State
    Civil Rights Commission, the Department of Education, special education, and the Board of
    Educational Examiners are to be employed by the Division of Administrative Hearings of the
    DIAL.
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Assumptions and Fiscal Impact
According to the DIAL, Division III will eliminate 20.0 full-time equivalent (FTE) positions due to
the alignment across the DIAL. This change will reduce the DIAL’s overall expenditures by
approximately $1.4 million from other funds which include federal funds and professional
licensing fees and $162,000 from the State General Fund. The overall reduction in Department
expenditures is approximately $1.6 million.
Source
Department of Inspections and Appeals
Staff Contacts
Anthony Arellano (515.281.6764) anthony.arellano@legis.iowa.gov
Xavier Leonard (515.725.0509) xavier.leonard@legis.iowa.gov
Division IV — Department of Justice
Description and Background
Division IV makes changes regarding the provision of legal services to State governmental
entities by the Attorney General, as follows:
• Removes provisions allowing the Attorney General to appoint assistant attorneys general to
    perform and supervise the legal work of the Department of Revenue (IDR) and the Division
    of Child and Family Services of the Department of Human Services (DHS).
• Removes a requirement for the Department of Public Safety (DPS) to employ an assistant
    Attorney General.
• Removes a provision related to an assistant attorney general serving as general counsel for
    the Department of Transportation (DOT) and directs the Attorney General to provide legal
    services for the DOT.
• Allows the Attorney General to charge State governmental entities for the cost of performing
    legal services and to require State governmental entities to provide office space for an
    assistant attorney general or other staff providing legal services exclusively for that entity.
• Changes the circumstances under which an entity of the State may employ private legal
    counsel.
Division IV changes certain provisions for the appointment and removal of the Consumer
Advocate by the Attorney General, removes the requirement that the Consumer Advocate be an
attorney, and transfers employment responsibility for the Consumer Advocate Division from the
Consumer Advocate to the Attorney General.
Division IV removes a provision making certain employees of the Consumer Advocate Division
of the Department of Justice subject to the merit system. Division IV also exempts all
employees of the Department of Justice from collective bargaining. Under current law,
nonsupervisory employees of the Consumer Advocate Division who are employed primarily for
the purpose of performing technical analysis of nonlegal issues are not exempt.
Division IV provides that the Attorney General may prosecute a criminal proceeding on behalf of
the State even if a county attorney does not request the Attorney General to act as a county
attorney. Division IV also grants the Attorney General exclusive jurisdiction to prosecute
election-related crimes. Under current law, county attorneys can also prosecute election-related
crimes.
Division IV modifies reporting requirements related to money settlement awards and court
money awards that were awarded to the State.
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Division IV changes the title of the First Assistant Attorney General to Chief Deputy Attorney
General. Division IV also eliminates the position of Special Assistant Attorney General for
Claims and transfers the duties of the position to the Attorney General.
Division IV takes effect upon enactment.
Assumptions and Fiscal Impact
The Department of Justice reports that Division IV will have no fiscal impact.
Source
Department of Justice
Staff Contacts
Isabel Waller (515.281.6561) isabel.waller@legis.iowa.gov
Justus Thompson (515.725.2249) justus.thompson@legis.iowa.gov
Division V — Economic Development Authority
Description and Background
Division V eliminates the Department of Cultural Affairs (DCA) and transfers responsibilities of
the DCA to the Iowa Economic Development Authority (IEDA). The IEDA is responsible for
ensuring that the economic development policies of the State are effectively and efficiently
carried out. Division V expands these responsibilities by including the management of the
State’s interests in the arts, history, and other cultural matters.
Below is a list of programs, funds, and responsibilities that Division V transfers from the DCA to
the IEDA:
• The Iowa Cultural Trust and the Iowa Cultural Trust Fund.
• Administration of a $520,000 standing appropriation that is split equally between operational
    support grants and the Community Cultural Grants Program established under Iowa Code
    section 303.3.
• Fee-based art programs.
• Statewide art programs.
• The Film Office.
• Surveys of existing art and cultural programs and activities.
• Cultural Grant Programs.
• Regional conferences and a statewide caucus on arts and cultural enhancement.
• The Cultural and Entertainment District Certification Program.
• The Iowa Great Places Program and the Iowa Great Places Program Fund.
• The Culture, History, and Arts Team Program.
• Historical Preservation Districts.
• The Iowa Arts Council.
• The Historic Property Rehabilitation Tax Exemption under Iowa Code section 427.16.
• The powers previously held by the Arts Division Administrator under Iowa Code section
    303.88.
• Archeological site surveys relating to rural electric cooperatives and municipal utilities with
    historic properties.
Division V eliminates the DCA Director position as well as the Administrative Division of the
DCA. The Director of the IEDA